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Thu, Sep 15, 2011

ACI-NA Welcomes New Airline Stats

DOT Would Require Info To Assess Effects Of A La Carte Fees

The breaking off of formerly bundled services into a la carte fees by airlines has had a couple of significant side effects besides increasing costs for travelers. The unbundled revenue allows airlines to pay less in federal taxes, and it distorts traditional statistics for problems such as lost or mishandled bags. ACI-NA, Airports Council International-North America, is applauding efforts by the US Department of Transportation to gather additional data that will restore the integrity of the denominator in these equations.

ACI-NA has submitted comments in response to DOT's Notice of Proposed Rulemaking regarding "Reporting Ancillary Airline Passenger Revenues." ACI-NA applauds the DOT for its proposal to create a stand-alone reporting form to accurately capture airline ancillary revenues not included in the standard ticket fare, which now comprise about 6.5 percent of airline revenue.

"ACI-NA remains concerned about the effect this may have on the Airport and Airway Trust Fund," said ACI-NA President Greg Principato. "By requiring airlines to report additional categories of fee revenue to the Department’s Bureau of Transportation Statistics we believe the proposed NPRM would supply the (FAA and GAO) with crucial data needed to assess the impact of unbundled fares and the increasing use of ancillary fees on the viability of the Airport and Airways Trust Fund."

Regarding the significance to measures of performance, Principato adds, "While the airlines already report the number of mishandled bags relative to the number of passengers flown, more passengers are choosing not to check bags to avoid fees, decreasing the number of checked bags overall. Reporting all checked bags would be a more useful comparison...allowing air travelers to compare the number of lost or damaged bags relative to the number of bags handled by the airlines."

ACI-NA represents local, regional and state governing bodies that own and operate commercial airports in the US and Canada.

FMI: www.aci-na.org

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